Interne kontroller og besvigelser i den offentlige sektor: Revision af interne kontroller i forhold til besvigelser, samt implementering af de nye ISSAI standarder

Rie Henriette Petersen & Abdulhalik Canitez

Student thesis: Master thesis


Executive summary: The thesis is a part of the MSc in Business Administration and Auditing study at Copenhagen Business School. It deals with reducing the risk of fraud by auditing internal controls and focusing on implementation of the new ISSAI standards regarding audit and the public sector in Denmark. Generally is every company in the world suffering from fraud. It is an international epidemic, which is affecting all kinds of companies in all sectors. The thesis reflects on, how the danish public sector is affected by fraud. The research is looking into how the internal controls work, and get an insight in how to raise the efficiency and optimize the controls. The main goal is to attain information regarding frauds affection on the public sector, which is covered by verdicts attained from courts in Denmark. Frauds can overall be split into two general types, fraudulent financial statements to deceive financial statement users and misappropriation of assets, which involves theft of an entities asset. Association of Certified Fraud Examiners’ study of more than 1300 companies worldwide constitutes that misappropriation of assets represents 81 % of all fraud-cases, while fraudulent statements represents the biggest loses for companies with an average loss of $ 250.000. Misappropriation of assets general loss is $ 120.000. The thesis’ mainly aim is to investigate misappropriation of assets, since it is more common1. The thesis looks into complications and areas the audit will be affected by the new ISSAI-standards. It is widely known that auditors doesn’t have standards to follow, when auditing public sectors. INTOSAI is a worldwide organization consisting of court of audit from several countries globally, which is now focusing on the missing link. To prevent error and fraud regarding internal controls the new ISSAI-standard will not only help auditors, but also public sectors to point out where to focus. Since the standard is new and under development, many improvements regarding internal controls hopefully will occur in the future. The thesis states that internal audit is a manner to minimize fraud and raise efficiency in the public sector.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2014
Number of pages248